UPDATED 20:54 EDT / MARCH 12 2025

POLICY

After confusion, FTC says it will go ahead with Amazon deceptive practices case

Following a short delay over what may or may not have been staffing shortages, the Federal Trade Commission now says it will now continue with its consumer protection trial against Amazon.com Inc.

“We have lost employees in the agency, in our division and on our case team,” FTC attorney Jonathan Cohen said at a status hearing in the U.S. District Court for the Western District of Washington. Cohen asked for a two-month continuance, citing budget concerns and staffing issues. He also said the FTC might have to move to a new office, hampering the agency’s ability to prepare for the trial.

The chaos was presumed to be related to the Trump administration’s Department of Government Efficiency, or DOGE, which cut the federal government’s workforce by about 62,000 workers in February. The FTC was one of the departments that lost personnel, with protection and antitrust staff reportedly among a dozen or so people who left the building.

Amazon’s attorney, John Hueston, disputed the request to delay the trial. “What I heard is that they’ve got the whole trial team still intact,” he said. “Maybe there’s going to be an office move. And by the way, both in government and private sector, I’ve never heard of an office move being more than a few days disruptive.”

A few hours later, Cohen said he was “wrong.” He explained that there were no “resource constraints” and the commission was “fully prepared to litigate this case.” He added, “Please be assured that the FTC will meet whatever schedule and deadlines the court sets.”

It’s uncertain what happened within the few hours Cohen made this about-turn. The FTC’s Chair, Andrew Ferguson, confirmed there wasn’t going to be a delay. “I have made it clear since Day One that we will commit the resources necessary for this case,” he told CNBC. “The Trump-Vance FTC will never back down from taking on Big Tech.”

The FTC sued Amazon in 2023 for what it said was the company using deceptive practices by making it difficult for consumers to cancel their Amazon Prime subscriptions. At the time, FTC Chair Lina Khan said Amazon’s “manipulative tactics” had “tricked and trapped” consumers, costing them “significant money.” The Commission later introduced the “click to cancel” rule, an effort to make it easier for Americans to get out of their subscriptions.

In a separate case, the FTC and 17 states are suing Amazon for allegedly using anticompetitive business tactics in the e-commerce market. This is set to go to trial in 2026.

Photo: Flickr

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